Fiscal 2020 First Quarter Sees Multiple
Steps
India Globalization Capital, Inc. (NYSE American: IGC) today
announced its financial results for the quarter ended June 30,
2019, which is the first quarter of its 2020 fiscal year.
During the three months ended June 30, 2019, the Company took
the following steps, among others:
- The Company’s subsidiary, Holi Hemp LLC, was awarded a license
to grow and process hemp in the State of Arizona.
- The Company established a business-to-business sales team, and
a raw materials supply chain, for the sale of Holi Hemp™ branded
products such as hemp crude, cannabinol (“CBD”) distillate,
tetrahydrocannabinol-free (“T-free”) oil, and other hemp
derivatives, in compliance with applicable laws and
regulations.
- The Company significantly expanded the number of dispensaries
in Puerto Rico where Hyalolex™ (the Company’s flagship product) is
sold, to about 34 at the end of June 2019.
- The Company contracted with a medical center in Puerto Rico to
run a double-blind, placebo-controlled clinical trial with IGC-AD1
on 60 Alzheimer’s patients. The protocol has been submitted to the
Institutional Review Board (“IRB”) in Puerto Rico and approval is
pending. Following approval from the IRB, the Company plans to
submit an Investigational New Drug Application (“INDA”) to the
FDA.
- The Company’s subsidiary, Techni Bharathi Private Limited
(“TBL”), commenced the execution of a National Highway Authority of
India (“NHAI”) sponsored local highway construction contract in
Kerala, India.
Revenue for the June 2019 quarter rose 11.5% to approximately
$1.65 million compared to approximately $1.48 million reported in
the June 2018 quarter. In both years, revenue was primarily derived
from the Company’s India-based infrastructure business which
consists of (i) rental of heavy equipment, (ii) execution of
construction contracts, and (iii) sale of infrastructure
commodities. With respect to the Company’s plant and cannabinoid
business, the revenue contribution for the June 2019 quarter was
approximately $104,000 derived from the Company’s sales in
hemp-based cannabidiol (CBD) under the brand Holi Hemp™ and from
Hyalolex™, the Company’s flagship product designed to help improve
the quality of life for elderly patients suffering from
Alzheimer’s, available now through an expanded network of
dispensaries in Puerto Rico.
SG&A expense for the June 2019 quarter was approximately
$1.25 million compared to approximately $0.52 million for the June
2018 quarter. Approximately $0.4 million of the increase was due to
legal and professional fees including those incurred in connection
with shareholder lawsuits.
Research and development (R&D) expense for the June 2019
quarter was approximately $0.25 million compared to approximately
$36,000 for the June 2018 quarter. R&D expenses were incurred
entirely by the Company’s plant and cannabinoid business.
Net loss for the June 2019 quarter was approximately $1.38
million or $0.03 per share, compared to approximately $0.51 million
or $0.02 per share for the June 2018 quarter. Increased expenses
from the plant and cannabinoid business and legal expenses, as
noted above, were the primary factors for the larger loss.
As discussed in prior SEC filings, as of June 30, 2019, several
law firms have filed shareholder lawsuits, including two pending
derivative suits, citing, among other things, the NYSE American
delisting proceedings and subsequent fall in share price. The
Company and its officers and directors have entered into a
memorandum of understanding as to preliminary terms to resolve all
pending derivative suits, subject to agreement on specific terms
and approval by the court in which the matters are pending. The
Company intends to vigorously defend all other pending actions.
India Globalization Capital,
Inc.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data)
(Unaudited)
June 30, 2019 (Unaudited)
($)
March 31, 2019 (Audited)
($)
ASSETS
Current assets:
Cash and cash equivalents
16,554
25,610
Accounts receivable, net of allowances of
$6 and $6
189
84
Inventory
1,970
248
Short-term investment
5,009
-
Deposits & advances
852
781
Total current assets
24,574
26,723
Intangible assets, net
187
184
Property, plant and equipment, net
7,055
5,886
Investments in unlisted securities
794
794
Claims and advances
895
878
Total long-term assets
8,931
7,742
Total assets
33,505
34,465
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
568
319
Accrued and other liabilities
452
509
Short-term loan
50
50
Total current liabilities
1,070
878
Other liabilities
15
15
Total liabilities
1,085
893
Commitments and Contingencies – See
Note 10
Stockholders' equity:
Common stock and additional paid in
capital, $0.0001 par value: 150,000,000 shares authorized;
39,511,407 and 39,501,407 shares issued and outstanding as of June
30, 2019 and March 31, 2019, respectively.
94,251
94,043
Accumulated other comprehensive loss
(2,400
)
(2,419
)
Accumulated deficit
(59,431
)
(58,052
)
Total stockholders' equity
32,420
33,572
Total liabilities and stockholders'
equity
33,505
34,465
India Globalization Capital,
Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except loss per
share)
(Unaudited)
Three months ended June
30,
2019 ($)
2018 ($)
Revenue
1,649
1,478
Cost of revenue
(1,608
)
(1,436
)
Gross Profit
41
42
General and administrative expenses
(1,249
)
(517
)
Research and development expenses
(247
)
(36
)
Operating loss
(1,455
)
(511
)
Other income/(expense), net
76
(1
)
Loss before income taxes
(1,379
)
(512
)
Income taxes expense/benefit
-
-
Net loss attributable to common
stockholders
(1,379
)
(512
)
Foreign currency translation
adjustments
19
(307
)
Comprehensive loss
(1,360
)
(819
)
Loss per share attributable to common
stockholders:
Basic & Diluted
$
(0.03
)
$
(0.02
)
Weighted-average number of shares used in
computing loss per share amounts:
39,508
30,981
About India Globalization Capital (IGC)
IGC currently has two lines of business: (i) infrastructure and
(ii) plant and cannabinoid-based products. The company is based in
Bethesda, Maryland, U.S.A. Its corporate website is www.igcinc.us.
Twitter @IGCIR.
Forward-looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements are based largely on IGC’s
expectations and are subject to a number of risks and
uncertainties, certain of which are beyond IGC’s control. Actual
results could differ materially from these forward-looking
statements as a result of, among other factors, competitive
conditions in the industries in which IGC operates, failure to
commercialize one or more of the technologies of IGC, failure to
obtain approval for our trial protocol from the IRB, changes in
federal, state, or local law applicable to our businesses and the
locations where we operate, failure to reach agreement on specific
terms to resolve the shareholder derivative suits, general economic
and political conditions that are less favorable than expected, the
Federal Food and Drug Administration’s (FDA) general position
regarding hemp-based products and related products in particular,
and other factors, many of which are discussed in our SEC filings.
In light of these risks and uncertainties, there can be no
assurance that the forward-looking information contained in this
release will in fact occur.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190809005072/en/
Claudia Grimaldi, PFO (301) 983-0998
IGC Pharma (AMEX:IGC)
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